French loan to finance CT terminal expansion

In the largest single funding initiative for one project, Transnet last week officially signed a €200m loan deal with the Agence Française de Développement Group (AFD) to part-fund Cape Town Container Terminal’s R4.6bn expansion. The plan entails deepening the harbour, upgrading quay facilities, doubling capacity to 1.4m TEUs a year (by 2012), and the installation of a gate automation and operating system. The loan (to be rolled out over 15 years with a three-year capital grace period), marks AFD’s first agreement with Transnet. Accepting the cheque at last week’s signing ceremony was Chris Wells, acting CEO of Transnet, who explained the planned expansion of the container terminal was just part of an R80bn planned investment programme. “It has been important to attract international investors, although we expect to fund 35% of our R80 billion programme through our own internally raised cash. “We started discussions with AFD with a view to their funding certain aspects of our infrastructure project that met with their requirements, and we look forward to further business and cooperation with AFD.” “We are a full supporter of Transnet’s expansion plans and are confident this will play a major role in stimulating the South African economy and sustaining jobs for South Africans working at the ports and the construction companies implementing the project,” AFD CEO Jean-Michel Severino told FTW. ● AFD is a specialised public development finance institution that has worked to fight poverty and support economic growth in developing countries and the French overseas communities for nearly 70 years. With offices in over fifty countries, Africa represents twothirds of its financial commitments, with South Africa being a major involvement for the past 15 years.